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SESSION V INTRODUCTION TO MEETING MANAGEMENT CONTRACTS AND NEGOTIATION

Session 5 contract and negotiation

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Page 1: Session 5 contract and negotiation

SESSION V

INTRODUCTION TO MEETING MANAGEMENT

CONTRACTS AND NEGOTIATION

Page 2: Session 5 contract and negotiation

AGENDA

Project questions – BudgetsNegotiationsContractsHousing Registration

Page 3: Session 5 contract and negotiation

TOP 10 Things Meeting Planners Do That Drive Sales and Catering Managers CRAZY

Don’t abide by timeline and deadlines outlined in the contract

“Tell me what my price quote will be. . .we don’t pay room rental!”

Pretend to understand Audio Visual (AV)Over inflate their numbers and request more

space than neededNot willing to share information

Page 4: Session 5 contract and negotiation

TOP 10 Things Meeting Planners Do That Drive Sales and Catering Managers CRAZY

Sign of on Banquet Event Orders (BEOS) without thoroughly reviewing

Poor label of meeting materials sent in advance to the hotel

Don’t allow us to provide solutions to their problems

On site contact is different from planning contact and does not know the program well

Call with pieces of information throughout the process

Page 5: Session 5 contract and negotiation

HOUSING

Four ways to handle housing process:

1. Attendees make their own arrangements2. Attendees respond directly to facility via online

reservation request link3. Attendees respond through organization’s in-house

housing department, which gives housing list to facility

4. Attendees respond through an outside housing bureau

Page 6: Session 5 contract and negotiation

HOUSING

Terms to remember: No-show Report: actual room stays versus rooms

confirmed

Housing List: used when you are paying for the charges, details name, room type and who will pay for what

Housing Bureau: ad-hoc management office for reservations and accommodations, cost determined by services requested on a fee per transaction or percentage of room rate, Hotels generally pay for this

Page 7: Session 5 contract and negotiation

HOUSING

More essential terms to remember:Cut-off Date: last day someone can buy a guest

room from the room block reserved for that meeting

Attrition: reduction in room block reserved for a meeting

Pick-up Report: shows rooms actually used during a specified period of time

Complimentary Rooms: free rooms given or negotiated for during site inspection etc. or earned for purchasing a given number of rooms. 1 per 40/50 rule.

Page 8: Session 5 contract and negotiation

HOUSING

Reasons to manage housing yourself:

Total control of the housing process Instant information regarding remaining rooms at

each property Accurate and immediate information on

complimentary rooms earned Guaranteed rates for each guest vs. price range Personalized service to the participants

Page 9: Session 5 contract and negotiation

NEGOTIATION CHECK-UP

Good negotiators can always reach agreement with the other party. T or F

Negotiation is a game, sometimes you win and sometimes you lose. T or F

Intimidation can be an excellent negotiation technique. T or F

If you leave the negotiation with a different solution than what you had anticipated, you have failed. T or F

Giving up something you want in a negotiation is a sign of weakness. T or F

It is better not to know too much about the other party, that way you wont get caught up with their problems or issues or needs at the expense of your own. T or F

Page 10: Session 5 contract and negotiation

NEGOTIATIONS

Goal: to reach a “win-win” positionUnderstand your groupIdentify your priorities

Must list Want list

Know the priorities of your sponsorsStyles – understanding stylistic differences

based on gender, culture, perspective enables you to be a better negotiator.

Page 11: Session 5 contract and negotiation

CONTRACTS/AGREEMENTS/PROPOSALS

Everything should be in writingNo assumptionsGet decision-maker or authorized signatureClarify liabilityContracts/agreements written from vendor

perspectiveReview contractual terms

Page 12: Session 5 contract and negotiation

NEGOTIATIONS

Remember. . .

Present and maintain a professional attitude Control stress and tension Avoid politics and egos Take time to gather facts and requirements ahead of

time Know the Dos and Donts Meet with people with authority to make decisions

Never accept a NO from someone without the power to say YES!

Page 13: Session 5 contract and negotiation

REGISTRATION

The first impressionAdvanced registration vs. on-site registrationIn-house systemPreliminary planning and marketingRegistration forms (KISS)Registration ListsStaffing

Page 14: Session 5 contract and negotiation

BUILDING THE COMPLETE MEETING PLAN

Program TimelineProgram logistics grid/specifications guideGeneral session show flow

Page 15: Session 5 contract and negotiation

SPECIFICATIONS GUIDE

Events Specification Guide (ESG)

AKA =: staging guide, meeting bible, spec guide Concise document of how the meeting will proceed Details the daily activities day, time, room, set-up, and

requirements Includes comp room assignments and who is

authorized to sign what Is comprised of a number of function sheets and/or

event orders

Page 16: Session 5 contract and negotiation

SPECIFICATIONS GUIDE

General overview: group name, days and dates, contract details, info about the organization

Meeting requirements by day, time, and place: floor plans, room set-up, signage, food, person in charge, AV etc.

List of contractors/suppliers, meeting staff, VIPs, hotel staff: names, numbers, function

Page 17: Session 5 contract and negotiation

PROJECT NEXT STEPS AND HOMEWORK

Begin working on your specifications guide Watch video"Ten Tips for Negotiating Hotel Contracts -

SparkPlug Ep.201" : http://www.youtube.com/watch?v=TWLps4w6pdY 

read: http://www.sparksight.com/pdfs/TenTipsforNegotiatingContracts.pdf and chapter 40 "Negotiating Strategically: building relationships and striving to do better than win-win"

Find and review an article that shares ideas for saving money for the client without compromising impact. Post ideas and references in this week's discussion board.